It turns out the roller coaster CAN go up!
My clients are starting to feel like the economy and the restaurant industry are finally stable for the first time after recent years where the roller-coaster only seemed to go down.
This is leading to (dare I type the word?) optimism.
The challenges of recent years have honed your skills so you’re better than ever – and ready for more.
That’s great, because we can now focus on the future, with minimal worry on restaurateurs’ minds – except for those who are prone to worrying and never give themselves a break.
Why People Are Optimistic
So, let’s focus on growing brands, building internal capability, and adding restaurants.
My clients’ growing markets have eye-popping demographics coming in the next few years, and astonishing numbers expected after that time.
That just adds to the optimism: All these new people will eat at least three times a day, sometimes more.
USA inflation is lowering and looking good compared to other countries. Our industry knows how to operate with a different workforce, and all those facts we had a few years ago about women not returning to the workforce – and people taking early retirement – turned out to be fiction.
Those groups turned out to be the last to return. Now they have reported for work, showing us what 3.6% unemployment looks like.
Revenue is checking in higher than ever. We stay sober realizing that revenue exists as somewhat of an illusion due to inflation and reduced guest count, so accept the former and focus on the latter.
As supply chains heal and food costs decline, your financials look better when you pay attention to how you operate.
Oh yeah, and that recession that people have been saying was coming any day now – nowhere in sight.
Reminds me of one of my favorite quotes, from former U.S. Labor Secretary Robert Reich: “Economic forecasters exist to make astrologers look good.”
What Does This Mean to You?
First, the basics: You ought to be taking advantage of lower food costs and increasing your margins and focusing on guest count instead of revenue.
Next, the big picture: Plan and implement improvements to your organization and grow your brands.
Never stop making your guest experience, employee experience, management, brands, and culture better.
